35 Which of the following is TRUE about exchange rates?They are more volatile than several underlying factors that move them such as money supplies and fiscal variablesBThey should not be volatile because they will determine the economic climate(c They are generally more volatile than stock pricesThey should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices(E) They never overreact to economic news

Exchange Rate Volatility:- The regularity and magnitude of variations in a value of currency is…

35 Which of the following is TRUE about exchange rates? A They are more volatile than several underlying factors that move them such as money supplies and fiscal variables They should not be volatile because they will determine the economic climate © They are generally more volatile than stock prices D They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices (E) They never overreact to economic news © O O O O

35 Which of the following is TRUE about exchange rates? A They are more volatile than several underlying factors that move them such as money supplies and fiscal variables They should not be volatile because they will determine the economic climate © They are generally more volatile than stock prices D They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices (E) They never overreact to economic news © O O O O

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 6PA

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